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Friday, February 17, 2012

13 Stocks Using Their Cash To Pay Higher Dividends

Are you looking for companies that can sustain and grow their dividend? In making that determination, a company’s Statement of Earnings is one of the last places you should look. Cash is king for the dividend investor and the Statement of Cash Flows is where astute investors begin when they want to understand the viability of a company. To succeed as a dividend investor, you must find companies that can sustain and grow dividends by focusing on their ability to generate cash. You can fake earnings, but you can’t fake cash.
Below are several stocks using real cash to raise their dividends:

The Coca-Cola Company (KO) manufactures, distributes, and markets nonalcoholic beverages worldwide. Feburary 16th the company increased its quarterly dividend 8.5% to $0.51 per share. The dividend is payable April 1, 2012, to shareowners of record as of March 15, 2012. This is the Company's 50th consecutive annual dividend increase. The yield based on the new payout is 3.0%.

Koppers Holdings Inc. (KOP) engages in the production and sale of carbon compounds and commercial wood treatment products and services to aluminum, railroad, specialty chemical, utility, rubber, concrete, and steel industries. February 16th the company increased it quarterly dividend 9% to $0.24 per share. The dividend is payable April 9, 2012, to stockholders of record as of the close of business on February 28, 2012. The yield based on the new payout is 2.6%.

The Bank of Kentucky Financial Corporation (BKYF) operates as the holding company for The Bank of Kentucky that provides various financial product and solutions. February 15th the company increased its semi-annual 7% to $0.30 per share. The dividend is payable on March 23, 2012 to shareholders of record as of March 9, 2012. The yield based on the new payout is 2.4%.

Assured Guaranty Ltd. (AGO) provides credit protection products to public finance, infrastructure, and structured finance markets in the United States and internationally. February 15th the company increased its quarterly dividend 100% to $0.09 per share. The dividend is payable on March 8, 2012 to shareholders of record at the close of business on February 23, 2012. The yield based on the new payout is 2.1%.

SCANA Corporation (SCG) engage in the generation, transmission, distribution, and sale of electricity to retail and wholesale customers in South Carolina. February 15th the company increased its quarterly dividend 2.1% to $0.495 per share. The dividend is payable April 1, 2012 to shareholders of record at the close of business on March 9, 2012. The yield based on the new payout is 4.4%.

Emclaire Financial Corp. (EMCF) provides retail and commercial financial products and services to individuals and businesses in western Pennsylvania. February 15th the company increased its quarterly dividend 12.5% to $0.18 per share. The dividend is payable on March 23 to shareholders of record on March 1. The yield based on the new payout is 4.2%.

Digital Realty Trust, Inc. (DLR), a real estate investment trust (REIT), through its controlling interest in Digital Realty Trust, L.P., engages in the ownership, acquisition, development, redevelopment, and management of technology-related real estate. February 14th the company increased its quarterly dividend 7% to $0.73 per share. The dividend is payable on March 30, 2012 to shareholders of record on March 15, 2012. The yield based on the new payout is 4.2%.

Textainer Group Holdings Limited (TGH) engages in the purchase, management, leasing, and resale of a fleet of marine cargo containers worldwide. February 14th the company increased its quarterly dividend 5.7% to $0.37 per share. The dividend is payable on March 6, 2012 to shareholders of record as of February 24, 2012. The yield based on the new payout is 4.6%.

Foot Locker, Inc. (FL) operates as a retailer of athletic footwear and apparel. February 14th the company increased its quarterly dividend 9% to $0.18 per share. The dividend is payable on April 27, 2012 to shareholders of record on April 13, 2012. The yield based on the new payout is 2.6%.

Cooper Industries plc (CBE) manufactures and sells electrical products. It operates in two segments, Energy and Safety Solutions, and Electrical Products Group. February 14th the company increased its quarterly dividend 7% to $0.31 per. The dividend is payable on April 2, 2012 to shareholders of record as of February 29, 2012. The yield based on the new payout is 2.0%.

TAL International Group, Inc. (TAL) engages in leasing intermodal containers and chassis worldwide. February 13th the company increased its quarterly dividend 5.8% to $0.55 per share. The dividend is payable on March 29, 2012 to shareholders of record at the close of business on March 8, 2012. The yield based on the new payout is 6.3%.

Compass Minerals International, Inc. (CMP) produces and markets inorganic mineral products primarily in North America and the United Kingdom. February 13th the company increased its quarterly dividend 10% to $0.495 per share. The dividend is payable March 15, 2012, to shareholders of record as of the close of business on March 1, 2012. The yield based on the new payout is 2.8%.

Hubbell Incorporated (HUB.B) engages in the design, manufacture, and sale of electrical and electronic products in the United States and internationally. February 10th the company increased its quarterly dividend 8% to $0.41 per share. The dividend is payable April 11, 2012, to shareholders of record on March 5, 2012. The yield based on the new payout is 2.2%.

Selecting stocks with increasing dividends is critical for an income growth strategy. The above list contains stocks that recently raised their dividends and those expected to in 2012; it is not a list of recommend buys. As always, due diligence should be performed before buying or selling any stock. For a list of stocks with a long string of consecutive cash dividend increases, see this list.

Full Disclosure: Long KO in my Dividend Growth Portfolio, DLR in my High-Yield Portfolio. See a list of all my dividend growth holdings here.

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